Board Meeting Presentation

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(No Transcript)
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Structure of presentation

• TVS Group
• Industry outlook
• TVSM Poised for quality growth

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The TVS Group
Established 1911
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TVS Group - Our Journey

• Exports to over 30 countries
• Largest in India

Entry into Electronics Manufacturing
Auto Components Manufacturing - 1961
Three wheeler Manufacturing
Dealership Agreement with GM - 1929
Trust Value Service
Established Overseas plants
Launch of Logistic Network
Two wheeler Manufacturing

• Exports of 2W to 55 countries

Launch of Bus Service - 1911
Begin Financial Services
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TVS Group - Awards Recognition

• Deming Quality Award
• Sundaram Clayton
• Brakes India
• TVS Motor Company
• Sundaram Brake Linings
• Lucas-TVS
• Japan Quality Medal
• Sundaram Clayton
• TPM Excellence awards
• Sundram Fasteners
• Brakes India
• TVS Motor Company
• Sundaram Auto Components Ltd

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India remains a lucrative market
Low penetration rate despite India being 2nd
largest market

• India is the second largest two-wheeler market in
  the world with sales of 9.4 mn units in domestic
  market in FY10
• However, penetration levels still very low
  compared to other countries such as China,
  Indonesia etc.
• Strong GDP growth at 8 augurs well for the
  Indian economy
• Rising per capita income to enhance
  affordability, and demand for two-wheelers
• Lack of public transport
• Emergence of a large young working population

Source KPMG
Increasing per-capita income
Source CSO, ENAM Research
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India Macro perspective

• Secular rural demand
• Stimuli such as NREGA will help positive thrust
  in rural consumption
• Higher MSP
• Retail Financing improving with structural
  changes
• CIBIL checks mandatory
• Higher down payment
• Absence of DSAs
• Tighter credit norms

Credit sales improving
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Two Wheeler Industry Average Monthly sales
(nos. in 000s )
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Motorcycles Industry Structure
Executive segment, the key focus area
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TVSM poised for Quality growth
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TVSM - Company overview

• One of the largest two and three wheeler
  companies
• A state of the art manufacturing plants located
  in Karnataka, Tamil Nadu, Himachal Pradesh and
  Indonesia
• Capacity 24 lakh vehicles (2009-10) being
  increased to 28 Lakhs
• Strong World class in-house R D
• Robust supplier base
• Extensive all India sales service network
• Rapid growth in exports
• Sales ( 2009-10) Rs. 4431 Cr.

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Strong presence in all 3 segments
(nos. in 000s )
1520
1342
1277
866
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Strong All India distribution network
Number of Dealers 641
January 2010
TVSM has a robust two tier distribution network
with 641 exclusive dealers supplemented by more
than 2000 sales service points
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Complete product range
A complete portfolio with product at every price
point
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TVS Jive 110cc

• Indias first auto clutch motorcycle
• Launched in April10 with pan-India availability
  by June/ July10
• Positioned in the Executive segment, which
  accounts for 60 of the motorcycle market
• Initial response very satisfactory.

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TVS Apache RTR 180cc
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Un-geared Scooters Steadily gain momentum

• Industry
• CAGR (5 years) 12
• Account for 14 of the two wheeler segment
• TVSM
• TVSM strong in the sub 100 segment. However
  overall TVSM Market share lower in the absence of
  bigger scooter.
• Launch of WeGo will address this issue

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Under seat storage illumination No more fumbling
in the dark
Self glow ignition key ring Now visible in the
dark
Best Design of the year 2008 Overdrive awards
New 90 cc engine More power for that zippy ride
Cell phone charger Get charged on the move!
Patented EZ center stand No huffing. No puffing.
Park effortlessly
Trendy decals A vibrant stylish look
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Scooty Streak

• Launched in Sept 2008 With 6 never before
  features, and leading edge styling

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TVS WeGo 110cc

• Multi-user friendly vehicle
• Equipped with
• Unique design technology - Body Balance
• Large 12 inch alloy wheels
• Big internal storage space
• LED tail lamp

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The stylish TVS KING
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The stylish TVS KING

• TVS entered the 3W market towards the end of
  FY08, with TVS-King.
• TVS-King engineered with best in class
  features.
• Achieved average monthly Sales of 2500 nos in
  April/May 2010
• Large potential for exports.
• Target of 50,000 units in FY11 (14,700 units in
  FY10)

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Indonesia The emerging opportunity
TVS Neo

• Third largest market in the world with volumes
  over 6mn units p.a.
• TVS has a local assembly plant with a capacity of
  0.3 mn units p.a.
• Launched TVS Neo , TVS Rockz and Apache in the
  Indonesian market

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Awards in Indonesia
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TVS Motors Standalone performance 2009-10
Rs Cr
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Summary

• Long term growth prospects for the industry are
  attractive
• TVSM poised to grow
• Strong innovation and faster upgrades
• Strong brands that resonate with their customers
• Exports will be a significant growth engine
• Entry into three wheeler has enhanced product
  portfolio
• Significantly improved/ superior product quality
• New products across segments, will strengthen
  TVS presence and lead to market share gains
• Improved product mix likely to increase
  realizations and profitability
• Focused efforts to reduce cost will improve
  profitability
• Strong free-cash flow expected

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Thank you
No part of this presentation is to be
circulated, quoted, or reproduced for any
distribution without prior written approval from
TVS Motor Company Limited, PB 4, Harita,
Hosur-635109, Tamilnadu, India. Certain parts of
this presentation describing estimates and future
plans may be forward looking statements within
the meaning of applicable laws and regulations.
Actual results might differ materially from
those either expressed or implied. This material
is not a complete record of the discussion.